Based on the most recent data from Corelogic, cash sales of homes fell for the 29th consecutive month in May to 31.9% of total sales, which represents the lowest share since 2008. The percentage of cash sales peaked in Jan 2011 at 46.5%. Prior to the housing crisis, cash sales averaged about 25% of the market.

While this statistic may reflect a healing housing market on a national level, it’s interesting to view the data on a more local level. Cash sales still represent almost half of all sales in FL, GA, NY, and NJ. Given that the strengthening dollar is dissuading cash sales to foreign buyers, it’s likely these elevated percentages still indicate distress in these markets. In TX, the share of cash sales has dropped to 28%.

One positive takeaway from declining cash sales is it may indicate less competition from investors for a tight housing inventory. Given that investors tend to purchase lower-priced homes, this may open up more inventory for first-time homebuyers.

Corelogic, a real estate analytics company, reported this week that distressed home sales, short sales and foreclosed homes, fell again last month to 11.4% of all sales, their lowest level since 12/07. The diminishing share and the competition for those homes have contributed to home price increases, as distressed sales typically sell at a discount.

The improvement in this measure of home industry health is susbtantial. At the height of the housing bust, distressed sales accounted for almost 1/3 of the total. However, a more sobering view is to compare it to the share before the bust. At that time only 2% of the market was distressed sales.

But let’s take the glass half full view. Other data also points to an improving market. Existing home sales rose for the 4th straight month in Jul, the inventory of homes for sales is increasing, and home prices are moderating. With still very low mortgage rates, this fall could be great opportunity for homebuyers.